Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Godstone. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Godstone have the legal entitlement to extend the lease for an additional 90 years under legislation. Please give careful attention before putting off your Godstone lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold premises in Godstone with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Nationwide Building Society | |
| Santander | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The lawyers that we work with undertake Godstone lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Leo was the the leasehold owner of a high value flat in Godstone being sold with a lease of fraction over 61 years unexpired. Leo on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mrs C Clarke bought a garden flat in Godstone in June 2010. The question was if we could approximate the price could be to prolong the lease by ninety years. Identical homes in Godstone with an extended lease were valued about £280,000. The average amount of ground rent was £45 invoiced annually. The lease end date was in 2096. Taking into account 70 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Godstone residence is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case affected 3 flats. The unexpired term as at the valuation date was 75 years.